Officials To Tell Senate About Bitcoin Promises, Pitfalls

U.S. law-enforcement officials are set to outline the pitfalls and promises of virtual currencies such as bitcoin Monday at the first-ever Senate hearing on the matter.

In testimony prepared for the hearing before the Senate Homeland Security and Government Affairs Committee, federal law-enforcement agencies said that while the anonymity and decentralized nature of some virtual currencies can pave the way for fraud, they also hold potential benefits.